Welcome page Contact Joanne Services  About Joanne  Sign up for email alerts Testimonials Buying Real Estate Selling Real Estate Credit and Finance Price Calculator Loan Calculator Reverse Mortgages Real Estate News Architecture Styles Home Improvements Mobile Home Living Capital Gains Tax HVAC Duct Law Property Tax Savings FIRPTA Law Proposition 8 Decline in Value Why Use a Realtor® What is e-PRO? Real Estate Glossary   Good Information  Before throwing in the towel,  homeowners owe it to themselves to try to avoid the long-term repercussions caused by going through a foreclosure. Debt Relief  Tips for Avoiding Foreclosure  Housing counseling agencies offer guidance on homebuying, renting, reverse mortgages and default and foreclosure prevention.  HUD Approved Housing Counseling Agencies in California   Find HUD Approved Services in any of the United States    Web Sites Tracking Foreclosures Check the notice of default sites, some of which charge fees for access, and none of which does Joanne Gardiner or C.A.R. endorse or recommend. I have found some of the information reported on theses sites to be quite outdated, especially the sites that charge fees. County Records Search  Nationwide  Foreclosure, etc.    Nationwide Foreclosures  Realty Trac Nationwide Foreclosure Connections     Are you a risk-taker? Here are some thoughts on the subject from some of history’s biggest risk takers "There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction." - John F. Kennedy (1917 - 1963) "And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom." - Anais Nin (1903 - 1977) "I guess what I'm trying to say is, I don't think you can measure life in terms of years. I think longevity doesn't necessarily have anything to do with happiness. I mean happiness comes from facing challenges and going out on a limb and taking risks. If you're not willing to take a risk for something you really care about, you might as well be dead."  - Diane Frolov and Andrew Schneider, (Northern Exposure, Northern Lights, 1993) "Life is a risk." - Diane Von Furstenberg "If you don't risk anything you risk even more." - Erica Jong "Take calculated risks. That is quite different from being rash." - George S. Patton (1885 - 1945) "First weigh the considerations, then take the risks." - Helmuth von Moltke (1800 - 1891) "Great deeds are usually wrought at great risks." - Herodotus (484 BC - 430 BC), The Histories of Herodotus "The policy of being too cautious is the greatest risk of all." - Jawaharlal Nehru (1889 - 1964) "What you risk reveals what you value." - Jeanette Winterson "Be wary of the man who urges an action in which he himself incurs no risk." - Joaquin Setanti "If you're never scared or embarrassed or hurt, it means you never take any chances." - Julia Sorel "Risk! Risk anything! Care no more for the opinions of others, for those voices. Do the hardest thing on earth for you. Act for yourself. Face the truth." - Katherine Mansfield (1888 - 1923) "I don't think about risks much. I just do what I want to do. If you gotta go, you gotta go." - Lillian Carter "In order for people to be happy, sometimes they have to take risks. It's true these risks can put them in danger of being hurt." - Meg Cabot, (The Boy Next Door, 2002) "It seems to me that people have vast potential. Most people can do extraordinary things if they have the confidence or take the risks. Yet most people don't. They sit in front of the telly and treat life as if it goes on forever." - Philip Adams "To win without risk is to triumph without glory." - Pierre Corneille (1606 - 1684), 'The Cid,' 1636 "The universe will reward you for taking risks on its behalf." - Shakti Gawain "Our lives improve only when we take chances - and the first and most difficult risk we can take is to be honest with ourselves."  - Walter Anderson Reprinted from RisMedia     Buyer/Seller Information, printable. Home Seller's Guide: printable. Provided by The Move Advocate™  The Move Advocate is an exciting new FREE service offered to National Association of Realtors® customers.   The Move Advocate provides a dedicated resource to help research, plan and complete a successful move. Through the Move Advocate™, customers receive FREE access to professional trained staff, special rates and discounts on moving services, on-line relocation moving information and more!  Read what a client had to say about his experience with The Move Advocate Moving a Wine Celler? Do it the right way!  Click Here     Change your address  Change your at the online Post Office. You can also connect utilities, move your magazines, or send your new email address to your friends. Before you move donate things you don't need anymore. Locate the closest Goodwill Donation Center Arrange a goods or cash donation to Salvation Army Western United States Moving.com  This site compiles resources, from packing to finding a mover, making relocation simpler.   Relocation Essentials offers a complete set of tools to help in moving and relocation. Homefair.com is where homebuyers and homesellers can research their moves. Moving Guide   Movers - Bay Area -Free quotes from Bay Area movers. Movers - Local and national movers, compare and save.

Understanding Foreclosures, Short Sales, and REOs The purpose of this page is to present information that reflects reality.  It is intended to educate sellers facing foreclosures and buyers thinking of buying them.  It is not intended to encourage or discourage either sellers or buyers, but to inform them accurately as to what these non-traditional transactions hold for them.  By knowing this information in advance sellers and buyers can make better decisions for themselves and not become overwhelmed.  Remember, knowledge is powerful. Answers to these and other concerns are available Are foreclosures, deeds in lieu of foreclosure, and short sales subject to federal tax income taxation? This and other answers are in our new paper: Taxation of Foreclosures, Short Sales, etc. Addendum to Short Sale - This is a typical addendum buyers are required to sign to get their offer in the running with the lender holding the loan on a short sale property. Worth reading. It is important to understand what is involved in a non-traditional transaction because the rules are quite different than selling or buying a home on open market from an individual who is current with their loan.  Do not assume that when a sale involves a foreclosure, short sale, or REO property that everything is the same as in a traditional transaction because it is not. For example, in California buyers have recourse through the courts and arbitration for resolutions when sellers are individuals voluntarily selling their homes.  In most cases buyers do not have any recourse when buying a foreclosure, short sale, or REO property.  Therefore, it is very important to understand the differences and decide if buying a foreclosure, short sale or REO fits your personality and investment goals. On the otherhand, when sellers find themselves faced with not being able to pay their monthly house payments any longer they usually assume they will automatically be foreclosed.  However, there are many alternatives available to them depending upon their particular situation.  Never before have lenders been as receptive to cooperating with short sales, recasting loans, alternative financial plans, etc.  These avenues coupled with my unique marketing techniques often can save homeowners from foreclosure. It's an effort that began more than a year ago, the government began offering programs like FHA Secure and the Hope Now alliance. Those programs are intended to help homeowners refinance into more affordable mortgages or work with lenders to modify their loan terms and reduce their payments. But as unemployment increases and more people face the prospect of foreclosure, critics say these initial programs aren't doing enough to help. With taxpayers putting up hundreds of billions of dollars to bail out financial institutions, it's time for the government to become more proactive about saving people's homes. FHA POSTS LIST OF LENDERS IN HOPE FOR HOMEOWNERS PROGRAM The Federal Housing Administration (FHA) of the U.S. Dept. of Housing and Urban Development has posted a list of lenders participating in the HOPE for Homeowners program. Participating lenders have indicated an interest in refinancing loans under the HOPE for Homeowners program. When contacting the lenders, the FHA is strongly encouraging consumers to also contact their servicing lender and any subordinate lien holders as their participation is vital in order to refinance into a HOPE for Homeowners mortgage. The program is voluntary and servicing lenders may offer different solutions for avoiding foreclosure. The FHA plans to update the list weekly on Fridays. More info Spend time digesting the information on this page.  It will benefit both sellers and buyers.  Then, when you are ready to talk, give me a call or drop me a line on the Contact Joanne form.  For information on buying or selling east bay homes, please contact me at 510-429-4800 or send me a note on the Contact Joanne form. Take care, Joanne Gardiner Your San Francisco Bay Area Real Estate Broker Information provided herein is deemed reliable but is not guaranteed.  Consult an attorney or tax professional before making any decisions.    MORTGAGE MODIFICATION INFORMATION FOR C.A.R. MEMBERS, CONSUMERS NOW AVAILABLE November 19, 2008 - C.A.R. has created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities, and also has created an easy-to-use reference chart about available programs. The consumer sheets contain information such as eligibility requirements, who to contact to apply, costs associated with the program, and other vital data. The sheets are formatted in Microsoft® Word, enabling REALTORS® to print and e-mail them to their clients. In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only. Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: loan number; income information and documentation; most recent mortgage statement; bank statements; and a letter demonstrating financial hardship. For further information, please visit the California DRE Web site at http://www.dre.ca.gov/mlb_adv_fees.html. REALTORS® also may direct clients to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA. More info Navigating the Maze of Short Sales, Foreclosures and REOs  Foreclosure, short sale and REO (real estate owned) properties are all “distressed sales”, but they definitely have some differences. Before you get involved with one it’s best to learn what those differences are and know what works best for you. The more you know about working with distressed sales the better off you’ll be to avoid their complications. What is a Foreclosure Property? A foreclosure property is a home currently in foreclosure. A Notice of Default has been filed in public records by the lender because the owner has stopped making mortgage payments. Unless mortgage payments are brought up to date, the lender will sell the property, usually to the highest bidder at auction.   When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You will usually be expected to pay with cash in hand. On top of that, you’ll receive the property “As-Is”, which can include existing liens, property taxes and even current occupants who need to be evicted.   What is a Short Sale Property? Short sales occur when a homeowner is in foreclosure but, before going to public auction, the home is sold. Under a short sale the lender must agree to accept less than the amount that is owed on the property.  These sales tend to be difficult and time-consuming for all involved.   If you are considering a short sale, know that prospective buyers must be informed of a seller’s lender’s approval before the buyer incurs any expense related to the purchase of the property.  Everything in a short sale hinges on the approval of the seller’s lender, who can bring in their own bidder and ignore your offer. The buyer retains the ability to pull the plug on the deal if the lender delays too long, but they should also try to be flexible with the escrow’s closing date.   What are REOs? REO is an acronym for Real Estate Owned and is industry jargon for a foreclosed property which has been repossessed by a bank or lender.   When does an REO occur? If a lender or bank is the highest bidder at a foreclosure auction or if no third party bids at the auction, then the property reverts back to the lender and becomes an REO.  You may find that lenders will go to great lengths to get rid of REO properties in their holding and that bank-owned homes are liabilities for banks.   Which is better? REO purchases tend to be much cleaner and attractive transactions than either foreclosure or short sale purchases. The bank which owns the property will see to the removal of tax liens (except IRS ones which have a 120 day redemption period), evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that in California REO transactions, banks are exempt from providing a purchaser with a TDS (Transfer Disclosure Statement) which normally requires sellers to tell you about any defects they are aware of.   Special Consideration for Investors California has some of the most stringent consumer protection laws, and this absolutely includes foreclosure properties under the provisions of Section 1695 et seq and 2945 et seq of the Civil Code. Also, investors are required to comply with the Home Equity Sales Act. Any failure to comply with these provisions may cause the courts to invalidate the sale.   Home Equity Sales Act This California Real Estate law requires special documentation. Any investor in the California short sale or pre-foreclosure market has to be aware of it.  CA Codes (civ:1695-1695.17): "1695.17. (a) Any representative, as defined in subdivision (b) of Section 1695.15, deemed to be the agent or employee, or both the agent and the employee of the equity purchaser shall be required to provide both of the following: (1) Written proof to the equity seller that the representative has a valid current California Real Estate Sales License and that the representative is bonded by an admitted surety insurer in an amount equal to twice the fair market value of the real property which is the subject of the contract. (2) A statement in writing, under penalty of perjury, that the representative has a valid current California Real Estate Sales License, is bonded by an admitted surety insurer in an amount equal to at least twice the value of the real property which is the subject of the contract and has complied with paragraph (1). The written statement required by this paragraph shall be provided to all parties to the contract prior to the transfer of any interest in the real property which is the subject of the contract. (b) The failure to comply with subdivision (a) shall at the option of the equity seller render the equity purchase contract void and the equity purchaser shall be liable to the equity seller for all damages proximately caused by the failure to comply." Investors looking to buy short sales which may be about to have an NOD Filed should be working with a Realtor and attorney on their team. Unlike foreclosures, investors purchasing a short sale typically buy the home for even less because they are not paying off the existing loan nor making up the back payments. Investors usually strike a deal with the existing lender, who agrees to take less than what they have coming to avoid dealing with a foreclosure.   REO properties are often considered to be the best way for an investor to purchase a distressed property because the seller is already out of the picture. It’s just the investor, the investor’s agent, the bank and the bank’s agent who are negotiating the transaction.   What else should you know about REOs? Most REOs are sold "As-Is" which means that they could have some potentially large issues.     Remember banks are not required to complete a TDS on the property's defects.    Also, the bank or lender can back out of the deal at any point along the way for any reason and the buyer is left with no recourse.      For Title and Escrow be sure to insist on  Linda Centoni, Account Manager North American Title 21060 Redwood Road Castro Valley, CA 94546 Office: 510-537-8300 Contact your Country Assessor's Office as well as your lawyer before making any decisions or taking legal aciton.   Deeds in Lieu of Foreclosure The difficult financial times have dramatically increased the number of foreclosures which property owners are facing. An alternative to a short sale or foreclosure to be considered by property owners is the possibility of deeding the encumbered property back to the lender--giving the lender a "deed in lieu of foreclosure."     Q 1. What is a deed in lieu of foreclosure? A A deed in lieu of foreclosure is a deed given by the trustor (the borrower) to the beneficiary (the lender) to stop the foreclosure process or as a way to completely avoid the start of the foreclosure process.  (Cal. Civ. Code § 2889; Bradbury v. Davenport, 120 Cal. 152 (1898).) Q 2. What are the advantages and disadvantages to the lender of taking a deed in lieu of foreclosure? A By accepting a deed in lieu of foreclosure, the lender avoids the costs and delays of foreclosing. However, (1) any junior liens are not extinguished (a foreclosure wipes out junior liens), (2) the borrower may later try to set the conveyance aside, and/or (3) the borrower's other creditors may argue that the conveyance was a "fraudulent conveyance" which jeopardizes their ability to satisfy their claims against the borrower. Lenders can protect themselves against hidden junior liens by obtaining an endorsement to the beneficiary's title insurance policy that places title in the beneficiary free and clear of any junior liens. Q 3. What are the advantages and disadvantages to the borrower of giving a deed in lieu of foreclosure? A By giving a deed in lieu of foreclosure and thus stopping the foreclosure, the borrower avoids any further injury to his/her credit and insulates himself/herself from any possible exposure to a deficiency judgment. If the deed in lieu is given to the lender early on, the borrower avoids having a notice of default recorded against his or her name.  However, the borrower will be denied any opportunity to retain the excess proceeds, if there are any, following a trustee's sale. Courts do not necessarily invalidate a transfer by deed in lieu of foreclosure even if the value of the property greatly exceeds the balance on the loan. (See Bastajian v. Brown, 57 Cal. App. 2d 910 (1943).) Q 4. Does giving a deed in lieu of foreclosure to a lender automatically cancel the note and deed of trust? A Not necessarily.  There should be a clear written agreement between the borrower and the lender regarding this issue of whether the debt is cancelled or whether the borrower still owes the lender any additional sums of money.   Q 6. Can a lender have a deed in lieu of foreclosure held by escrow at the time of making the loan to be transferred to the lender in the event of the borrower's default? A No. A deed in lieu of foreclosure given at the time of making the loan or required to be given in the loan documents effectively cuts off the borrower's redemption rights (with a judicial foreclosure only) following default and is thus prohibited by law. (Bradbury v. Davenport, 120 Cal. 152 (1898).)  Q 7. Can a borrower complete a deed in lieu of foreclosure and record it without the lender's permission? A No.  A borrower shouldn't do that for two reasons.  First, transfer of title doesn't automatically extinguish the note and deed of trust.  Second, recording the deed raises a rebuttable presumption of the delivery and acceptance of the deed by the lender.  A deed does not effectively transfer title if it is not accepted by the lender (Perry v. Wallner, 206 Cal. App. 2d 218 (1962)).  In fact, Civil Code Section 1058.5 provides a lender with a way to reject this attempted transfer of title.  The lender can record a Notice of Nonacceptance. Copyright© 2008, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) All rights reserved. Permission to reprint this article granted by Legal Department of the California Association of Realtors® CAR  Loan Forbearance Agreements Must be in Writing A lender's agreement to forbear or refrain from foreclosing on a home must be in writing and signed by the lender, even if the borrower has performed on the agreement by making a payment. This was the ruling of the recent appellate court case of Secrest v. Security National Mortgage Loan Trust (2008 WL 4516413). This case serves as a good reminder for REALTORS® and their clients to get loan forbearances, loan modifications, and other agreements with mortgage lenders in writing and signed. In this case, the borrowers of a home loan defaulted in 2002. In a phone conversation, the bank's loan resolution consultant agreed to enter into a forbearance agreement to refrain from foreclosing if the borrowers paid the arrearage by making an initial payment of $13,422 followed by monthly installments. The loan officer then faxed an unsigned written forbearance agreement to the borrowers. The borrowers noticed errors on the proposed agreement, and at the loan consultant's instructions, they corrected those errors on the document itself, signed it, and returned it to the loan officer along with the $13,422 initial payment. The lender, however, never signed the forbearance agreement. Instead, the lender sold the note and deed of trust, and two years later, the new lender filed a notice of default. The borrowers in this case filed a lawsuit to stop the foreclosure claiming that, because of the forbearance agreement, the notice of default overstated the amount of the default. The court disagreed. The court noted that, under the statute of frauds, a mortgage loan must be in writing and signed by the party against whom enforcement is sought. Similarly, if an agreement is subject to the statute of frauds, an amendment to that agreement is also subject to the statute of frauds. The court held that, in this case, the forbearance agreement at issue was not enforceable because it was not signed by the lender. The borrower nevertheless argued that a signed agreement was not required because they partly performed by making the $13,422 initial payment. Again, the court disagreed. The court ruled that the payment of money is not "sufficient part performance to take an oral agreement out of the statute of frauds," because the borrowers paying money under an invalid contract "have legal means to recover that money if they are entitled to its return or have not received credit for it." Financing Differences from a Lender's Perspective... Claudia Kim, Loan Officer, with Cherry Creek Mortgage offered the following insights from a lender's perspective.  Claudia has more than 30 years experience in originating Conventional, FHA and VA loans.  Call Claudia at 925-474-1115 or toll-free at 800-325-2062 X 1115 or visit Claudia's web site. Buyers do not get to choose title company.  Often the seller’s title company seems to be understaffed and overworked causing delays, mistakes, and mismanagement.  In the end, it seems to work out though with frustration.  However, a lot more work and follow up is required.  A commitment to review documents and carefully track the file is required to be successful. Buyers need to lock in their interest rates for a longer period of time to allow sufficient time to overcome difficulties due to choice of title company, etc. The cost to the borrower for the longer lock in periods are probably .25 to .5 point loan fee. Adequate “history” of the property is missing.  In some cases, this seems to be more important than others.  Buyers/Borrowers must, as usual, be sure to exercise the use of inspections and professional advisers during the discovery period.  A few foreclosure sellers don’t want to allow discovery time.  In such cases, I would never encourage the borrower to pursue an offer.  Discovery time is essential. 4301 Hacienda Dr. Ste. 120 - Pleasanton, CA 94588 - toll-free 800-325-2062 X 1115   Home Warranty Coverage One of the major Home Warranty Companies Representative's shared this this information about home warranty coverage on foreclosed homes. Home Warranty coverage is usually not good for the buyers of a foreclosed home because 9 out of 10 of those homes did not have a home inspection. When the new owner tries to get claims covered through a home warranty the new owner has nothing to stand on to prove the problem was not pre-existing so most claims are denied.  Homes are sitting vacant for long periods of time and appliances are not being used which in turn is causing immediate issues when they are starting to be used by the new owners. I recommend all buyers of foreclosed homes get home inspections regardless of whether or not the seller is covering repairs.  Buyers need to know the condition of what they are buying.  A professional licensed inspector will do a thorough inspection of the home and the appliances and issue a written report to the buyer.  The report then becomes the documentation the buyer needs when dealing with a home warranty company.  The report can substantiate that the failure occurred after the coverage became effective.  Some people are buying foreclosed homes that have slab leaks, pool equipment that is shot, electrical systems that is shot, etc.  Without professional inspections by licensed contractors or technicians of certain trades thoroughly buyers are not prepared for what lies ahead.  If a buyer has a written home inspection report by a licensed inspector, they buyer can use their warranty coverage immediately upon receiving the warranty.  The only time a technician would assume the issue is pre-existing is if there are big indicators that this could not have just happened in one month. For example, if the call is a pipe leak in a wall one month after the close of escrow, and the tech goes there and sees there is mold present and a large amount if water damage, we would ask the tech if that kind of damage could have occurred within the time frame that it took him to get there from when the buyer placed the call, which is usually 1 to 3 days.  If there is evidence the problem has been going on longer than 3 days that would be considered a possible pre-existing issue.  In this scenario an inspection report would really benefit the buyer.   We then ask the tech how long he feels the issue has been going on and he will tell us what he thinks. That is how we determine our decision most of the time, but every situation is different.  Without a written inspection report this type of claim would probably be denied.    News About Foreclosures, Short Sales and REOs New State Law Mandates Disclosure and Extended Notices for Tenants at Foreclosed Property Effective July 8, 2008 On Monday, July 8, 2008, Senate Bill 1137 (Perata – D-Oakland) was signed by Governor Schwarzenegger. It takes effect as law immediately. This bill enacts several changes to the procedures that must be followed before the holder of a mortgage can issue a notice of default or notice of trustee sale. In addition, it adds new requirements when there is a tenant residing at the foreclosed property. Under the bill, a mortgagee (bank) must mail a notice to any tenant(s) who live at the property on which foreclosure proceedings have begun. That notice must contain the following information: "Foreclosure process has begun on this property, which may affect your right to continue to live in this property. Twenty days or more after the date of this notice, this property may be sold at foreclosure. If you are renting this property, the new property owner may either give you a new lease or provide you with a 60-day eviction notice. However, other laws may prohibit an eviction in this circumstance or provide you with a longer notice before eviction. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights you may have". The bill also provides that a bank or anyone who purchases a foreclosed property in which a tenant or a subtenant resides and who wishes to terminate that tenancy must provide the tenants or subtenants with a 60 day written termination notice to vacate the property. As originally introduced, the bill would have required a 90-day notice to terminate such tenancies. CAA successfully negotiated amendments to the bill that reduced the notice from 90 days to 60 days and an amendment that added a sunset date to the law, which means that the 60-day notice provisions will expire on December 31, 2012, unless extended by subsequent legislation. CAA members, especially fee management companies should anticipate calls from tenants who receive a notice of foreclosure sale as required by this new law. For additional information about foreclosures and rental property, Click here  for CAA's Q&A.     800-474-9934   510-538-0222      Liberty Floor Covering.  2437 Tripaldi Way, Hayward, CA 94545 - Phone: 510-786-0119 Browse their web site For information on buying or selling east bay homes, please contact me at 510-429-4800 or send me a note on the Contact Joanne form.  Sign up for email alerts Thank you, Joanne P.S.  Be sure to add us to your favorite places. ~ Joanne L. Gardiner, Broker, e-PRO Realtor Advantage Realty Advantage Mortgage Associates 3205 Whipple Road - Union City, California 94587 (510) 429-4800 San Francisco Bay Area  ~ San Francisco East Bay Real Estate web site: http://www.joannegardiner.com Contact Joanne Our primary realty service areas in the San Francisco Bay Area: Hayward, Castro Valley, Fremont, Newark, Niles, San Leandro, San Lorenzo, San Ramon, Sunol, Oakland, Foster City, Burlingame, and San Mateo. The types of real estate in which we specialize are:  single family homes, detached homes, attached homes, duets, condominiums, townhomes, garden homes, PUDs, manufactured homes, mobile homes,  income property, investment property, tri-plexes, four-plexes, apartment property, and special use properties such as churches for sale.

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